COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE OF THE WHOLE - - - Room 401, City Hall Philadelphia, Pennsylvania Tuesday, June 15, 1999 3:15 p.m. - - - RESOLUTION 990221 - An Ordinance amending Title of the Philadelphia Code entitled "Contracts and 10 Procurement," by amending Section 17-107, entitled "Contractors: Labor-Management Relationships," by 11 revising the prevailing wage ordinance by extending the prevailing age requirements to include all 12 building and construction work contracts with City Agencies and City-related Agencies, and by extending 13 the prevailing wage requirements to building or construction work contracts on which City, City 14 Agency and City-related Agency funds are allocated or spent, all under certain terms and conditions. 15 - - - 16 PRESENT: COUNCIL PRESIDENT ANNA C. VERNA, Chairwoman 17 COUNCILMAN DARRELL CLARKE COUNCILMAN DAVID COHEN COUNCIL FRANK DI CICCO COUNCILMAN JAMES F. KENNEY COUNCILMAN RICHARD T. MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILWOMAN MARIAN B. TASCO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 I N D E X RESOLUTION 990221 PAGE JOHN DOUGHERTY, Local 98 .................... NATHANIEL SABIR, Local 332 .................. 15 SAM STATON, JR. ............................. 17 3 BILL NO. 990221
Good afternoon. This a continued public hearing of the Committee of the Whole on Bill No. 990221. It was continued from Tuesday, June 8, 1999, until today. The Chair at this time recognizes Councilman Kenney.
Thank you, Madam Chair. In an effort to have a cogent discussion on the bill before us today, there were amendments that were offered yesterday circulated to Members of council making specific changes in this piece of legislation. Today as a result of conversations with the parties involved, there have been additional changes. So in an effort to present clarity, the new amendments have been circulated to each Member of Council. The two basic changes that the amendments represent is the first is a change in the $2,000 threshold and an elevation of that threshold to $15,000. After discussions with the Office of Housing Community Development, it is believed that that $15,000 threshold will protect and preserve the men program and the home improvement program and also protect numbers of small contractors who do 4 BILL NO. 990221 this type of work from the community on behalf of the Office of Housing Community Development. That's the first change. The second change is the elimination of language which appears on Section 2, in the original circulated amendment on (10), Line after 8 the semicolon the words "and for mill work, cabinet work and other carpentry products that are pre-fabbed off site for installation on project site;" will be deleted.
Would you repeat that, please, so that everybody is fully aware.
On the originally circulated amendments, the second amendment is on (10), the eighth line after the semicolon, "and for mill work, cabinet work and other carpentry products pre-fabbed off site for installation on project site;" shall be removed. The only additional change, Madam President, is that as was suggested by the Law Department at our previous hearing, we are inserting a section which Members can read at their desk which requires contract language as opposed to the mandating of these agencies to provide -- as opposed 5 BILL NO. 990221 to us mandating these agencies to do certain things, the Law Department suggested that contract language similar to what did on South Africa be used as the vehicle to accomplish our goal. We have incorporated that into the amendments and also are offering them today. It is my understanding, Madam President, that Council Member Darrell Clarke has an additional amendment to this particular piece of legislation which I have reviewed and the parties involved have reviewed. I consider it a friendly amendment. I also consider it to be an amendment that effectively approves the bill, strengthens the bill, and provides opportunities for all Philadelphians of all ethnic background and color to participate in the renaissance of Philadelphia, and I commend him on his efforts. And if you feel it appropriate to recognize him at this point to make that offering.
Excuse me, Councilman. Does everybody have copies of amendments? 6 BILL NO. 990221 The Chair recognizes Councilman Clarke.
Thank you, Madam President. As indicated earlier by Councilman Kenney, I had asked to do this amendment, and from discussion with all pertinent parties, I think we came up with an amendment that is acceptable as it relates to the neighborhood participation. I would like at this point to read the amendment. Add a section, Section 2, at the end of the bill to read as follows: "SECTION 2. This bill shall become effective when the Minority Business Enterprise Council shall have certified to he Mayor and the Council that all unions involved in performing City work, as defined in Section 17-107(1)(b) of the Philadelphia Code. "(a) have recruited to their apprenticeship programs the maximum feasible number of residents of Philadelphia census tracts in which the median income is no greater than 30 percent of the median income of the Philadelphia Standard Metropolitan Statistical Area; and. "(b) have in place a contractually binding program, to continually recruit to their apprenticeship programs, on an annual basis, the 7 BILL NO. 990221 maximum feasible number of residents of Philadelphia census tracts in which the median income is no 4 greater than 30 percent of the median income for the Philadelphia Standard Metropolitan Statistical Area;. "(c) have in place a contractually binding program assuring that persons recruited as apprentices pursuant to paragraphs 2(a) and (b) above will be assigned, in reasonable proportion to their overall numbers, to the full range of jobs available to such unions on a continuing and long-term basis. "SECTION 3. Programs adopted pursuant to Sections 2(b) and 2(c) above may include programs like Philadelphia Housing Authority's Working Together for Jobs Agreement, the TOP/WIN program, or the Congreso de Latinos Unidos Apprenticeship Prep for Trades APTitude Program, or other similar programs." Thank you Madam Chair.
Thank you very much. It is my understanding we have a couple witnesses that would like to testify. John Dougherty. 8 BILL NO. 990221 (Applause.)
Is Mr. Sabir here? Would you please join us at the witness table, please. Kindly identify yourself for record and proceed with your testimony.
Yes, John J. Dougherty, business manager, International Brotherhood of Electrical Workers Local Union 98.
Over the last few months, there's been a lot of discussion and there's been a lot of off-the-record discussion in reference with the Council Persons and myself in reference to prevailing wage. And one of the facts we wanted to -- the prevailing wage was put in place not as a union or a non-union rule, it was put in place to keep local contractors and local people employed at the wage standard that is needed to live in that specific area. Now, on my person today I have a couple pieces that I'd like to hand out, if possible.
Certainly. 9 BILL NO. 990221 Mr. Dougherty, would you please proceed with your testimony.
Thank you, Madam. There's two pieces here. " In the last couple of years there was a severe attack on the prevailing wage at the state level. This seem to be the piece that most people referred back to, and that's just for information sake. The other piece in which we handed out which is a position paper, if you would turn to 6, in the summary on of the position paper, I can't simplify or agree with any more any other document. " And it says in summary, "In conclusion, the prevailing wage must remain in effect for several reasons: Stabilize local economies, ensure living wages for construction workers and their families, maintain level playing field for contractors, maintain tax base of communities, ensure efficient high quality of public projects, ensure competition based upon reputation, quality of work, not just how 10 BILL NO. 990221 much a contractor can slash wages, encourage employers to provide health and welfare and pension benefits to workers. Also over the last few weeks prior to the session, there was a lot of discussion about the building trades as a whole and their participation in the communities. Now, we're not here to discuss our charitable contributions or all the other side organizations that we do belong and the amount of money that we donate to this area, but more or less we're talking about the neighborhood involvement in our local unions. Now, we have made tremendous strides. We have reached out. It's a difficult process. The one fact that a lot of people, I think, don't take into fact is up until the last year and a half or so, we were severely unemployed. I can talk in particular Local 98. As most recently as the end of 1993-94, we had 65 percent unemployment. Now 65 percent unemployment doesn't allow for a whole lot of apprenticeship applications. Also, a majority of them do live in Philadelphia and we've had problems out of that 65 percent unemployed, we had better than half of them with no unemployment benefits. So it wasn't like we 11 BILL NO. 990221 were sitting back courting jobs. We were hanging in to survive. Even through this process of unemployment, we knew that we had to be more involved in the community. We have relationships, and some of the relationships, as in the amendment, are a few programs, TOP/WIN, Congreso, most recently a diverse apprenticeship program that's going, the Philadelphia Building trades just entered into the last few most or so a relationship with the Philadelphia Housing Authority in which the tenants of the Philadelphia Housing Authority will have the opportunity to be part of the Philadelphia building trades. So you at Local 98, we have already guaranteed through contract for a little over 60 tenants to be local be part of Local 98's program. Now, they are high numbers in reference to all the other programs we're involved in. Again, speaking only for Local 98, I was at a Council Session a few months ago in which one of the Council Members got up and said, well, how come we always pushing people to the basic trades which is what we like to be referred to which is the building trades are made up of the basic trades and the mechanical trades. 12 BILL NO. 990221 Now, the good part about the building trade that we're proud of every single union and the role they play. We can't build a building without each other. And we take offense to any Council Person who would say that by being a member of a basic trade is not the same as being members of a mechanical trade. And the prevailing wages for all these unions have a significant amount of benefits attached to them. But for the edification of some, there are some skilled opportunities opening up. Local 98 just recently amalgamated with a local union that was centered in Norristown and brought 56 contractors back to the City of Philadelphia, which will for all due purposes increase more opportunities. Because of bringing 56 contractors back to Philadelphia, we had to get a much larger building.
We just purchased as of three weeks at a significant sum in which the members pay, no tifts, no grants, no other public monies, a building at 17th and Spring Garden inside the City of Philadelphia. Now, to continue out that process, we also wanted to be inclusive of neighborhood kids into the higher skill program. There's a program up 13 BILL NO. 990221 at University City, the Penn Skills Development Center, which I have a letter in front of me and if you don't mind I'd like to read in the record. It says, "Dear Mr. Story, this is a letter of support for the Skills Development Center's Private Industry Council funded out of School Youth Training Program based at University City High School. That is giving math education, career counseling, a general backgrounds in the standards of telecommunication wiring, such as DISI," which Local 98 pays an significant amount of dollars to be a member of. And a lot of people that were doing a lot of work prior to us bringing this to fruition here in the City were not certified to do have. "Preparing them for certification in Category 5 copper and fiber terminations. It is our hope, like yours, that many of the students will become interested in a variety of career opportunities in the telecommunication and computer networking fields and become motivated to continue their education in order to pursue these interests. Additionally, this program could help increase the quantity and quality of applicants to Local 98 apprenticeship programs. We recognize that one component in engaging students to pursue 14 BILL NO. 990221 educational and career pathways and hands-on experience. Accordingly, we support the efforts of several local vendors, including Delaney Telecom, Tri-State Reliables, and others, to work with students at stipend interns. " There is a series of relationships that we have developed over a period of time. It is not an easy program. We are just getting back to a point where every time we take a step out front, there's a significant amount of dollars. I think that the Philadelphia building trades Local 98 and my peers to my left and right will tell you that we are committed to Philadelphia. We probably don't get enough credit for our active roles in the communities, charities. I had the opportunity to go to up to West Moreland Street to see the disadvantaged -- it's actually the Retardation Center, but it's disadvantaged children. The building trades were able to raise $75,000 recently, this Saturday evening. We went up there. It's a program which gives dysfunctional kids the 15 BILL NO. 990221 opportunity to go to work. One of the products that they do, they install lights in the packaging with Local 98's blessing. And the only recommendation we had there is that they don't stop calling us. It's a situation where to continue to be a good citizen, we feel that the prevailing wage not only goes to everything that I read earlier, but also has a tremendous amount of spin. It allows people to maintain their life-style in the City. And I'm open to any questions. Thank you.
Good evening, Madam Chair. My name is Nathaniel Sabir. I'm president of Laborers Local 332 International of North America. I'm here today to testify for my business manager Mr. Sammy Staton, Sr. who is in Ohio on union business. Laborers Local 332 is here today to lend our support to this bill and ask the Council to pass into law. This bill would make it very plain to those who have constantly found their ways to break the law that they are doing wrong. It must be clear to those who have devised contracts and community 16 BILL NO. 990221 development corporations to build in small parcels to avoid paying the Davis Bacon wages that they are breaking the law. Many say they have found their way around the law. But let us be clear, finding your way around the law is breaking the law. In most cases, as working men and women, we have been robbed of a decent wage. It is not been reduced cost of projects, but rather dollars have gone to the pocket of contractors. By amending Title of the Philadelphia Code to included the 12 new language offered under this proposed Bill 990221 13 there should be no excuse for anyone in the City of 14 Philadelphia to tamper with the Davis Bacon Law or 15 rob men and women of a fair decent wage. 16 When they passed the Davis Bacon law, 17 the Congress of the United States was clear about its intent. It was intended to provide a decent wage for Americans working on federally funded projects. As we move into this welfare to work era it is important that there are jobs available which allow families to obtain a decent place to live, to provide their children with food, clothing, and an education. Again, I'm here today to voice Laborer 17 BILL NO. 990221 Local 332 support for this legislation and ask this honorable Council to quickly pass it into law. I commend the Honorable Councilmen for standing up for working men and women and I thank you for granting me this opportunity to appear before you today. Thank you.
Are the other gentleman interested in testifying that are sitting at the table?
Yes, Honorable Chair. My name is Sam Staton, Jr. I'm the assistant labor business manager of Laborer Local 332. Just to add to our statement that we presented to Council, we have firsthand experience with contractors who have come into your our communities and come in to our City that are truly unfair to the public in general. I'm speaking about communities. Most of the agreements that we have made with these contractors that they have community participation. And what we find in a lot of areas that they don't pay the right prevailing wages. They don't have benefits to the community people. When they leave and gone, the 18 BILL NO. 990221 person is in just as bad shape as they were when they first started. So we asking City Council to pass this bill. Thank you.
Thank you. Councilman Nutter, your light is on. Would you like to ask a question.
Thank you. Are there any questions from Members of Committee? Gentlemen, thank you very much. Our next witness is Grace Gibson. Is Ms. Gibson in the room? I understand Ms. Gibson had to leave. Do we have any witnesses that would like to testify? Seeing none, this will conclude our public hearing. - - - 19 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE OF THE WHOLE - - - Tuesday, June 15, 1999 - - - Public Meeting conducted by the Committee of the Whole, held in Room 401, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS 980883, 980921 - - - PRESENT: COUNCIL PRESIDENT ANNA C. VERNA, Chairwoman COUNCILMAN DARRELL CLARKE COUNCILMAN DAVID COHEN COUNCIL FRANK DI CICCO COUNCILMAN JAMES F. KENNEY COUNCILMAN RICHARD T. MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILWOMAN MARIAN B. TASCO - - - 20 PUBLIC MEETING
We will now go into our public meeting. The Chair recognizes Councilman Kenney.
Madam Chair, I move that the amendments to Bill No. 990221 as read into the record at the public hearing be approved second. (Duly seconded.)
It has been moved and properly second that the amendments as previously read be approved. All in favor will significant by saying aye. Those opposed? The ayes have it. The motion is carried. The Chair recognize is Councilman Kenney.
Thank you, Madam President. I move that Bill No. 990221, as amended, be reported out of this committee with a favorable recommendation and a request made for Rules suspension to allow First Reading at our next Council Session. (Duly seconded.) 21 PUBLIC MEETING
It has been moved and properly seconded that Bill No. 990221 be reported out of committee with a favorable recommendation, as amended, and that the Rules of Council be suspended so as to permit First Reading at our next Session of Council. All in favor will signify by saying aye. Those opposed? The ayes have it. The motion is carried. This conclude our public meeting. Thank you very much. (Applause.) (Council adjourned at 3:40 p.m.) - - - 22 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of June 15, 1999, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE OF THE WHOLE ___________________________ Lisa C. Bradley, RPR and Notary Public